Importance of English in Tourism Industry

Importance of English in Tourism Industry Introduction What is English, English is a West Germanic language that was first spoken in early medieval England and is now a global lingua franca. It is an official language of almost 60 sovereign states and the most commonly spoken language in sovereign states including the United Kingdom, the United States, Canada, Australia, Ireland, New Zealand and a number of Caribbean nations. It is the third-most-common native language in the world, after Mandarin and Spanish. It is widely learned as a second language and is an official language of the European Union and of the United Nations, as well as of many world organisations or group. After this is, Owing to the assimilation of the words from many other languages always from the history, modern English is consists of a very large of the vocabulary, with complex and irregular spelling, specifically of vowels. For the modern English has not only assimilation words from other European languages, but from all over the world. The Oxford English Diction ary lists more than 250,000 of not the same words, not include the many technically, scientific, and slang period. Why the teenagers in the tourism industry are unable to communicate of well in English, what is the communication. The communication is the giving or receive the information, message or the data from other person. The communication is the something we are doing in the life of the everyday. In this way, why the communication from us is very important for other people. The communication also can separate the two types of communication for the example is the verbal communication and the non-verbal communication. The good communication is very important in the tourism industry this is because it is prevent of the misconception and the error or the mistake. Main Body Next, if you is a good or well of communicator. You must speaks expressly to customer, guest and the tourism. After this is, you must listen carefully to listen what are the customer, guest and the tourism says to you. Next, check and confirm the information, message, and the data is correct or not. What is the reason about why the teenagers in tourism industry are unable to communicate are well in English. This is because, the teenagers working in tourism industry have some teenagers is come from other country or the overseas for the example is Vietnam, Brunei, Philippine, Thailand, and also have other country, because the most teenagers come from country in above cannot or don’t know how to speak and communication with the customer, and the guest. This is because every guest come from different country is using the English to communicate or ask the different kind of the question with the other person. Why English is important for us using to communicate or ask the different question from other person. Why English is important for us using every day, the reason is the English may not be the most of spoken language in the world, but it is the official language in a large number of countries and English is forecast that the number of the people in the world that use in English to communicate on a regular basis is 2 billion ! Next, if our can speak or understand the English can easily to understand the question from other person and easily to make or ask question from other and also can improve the relationship with other person. Next is the many of the world’s top films, books and music are published and produced in English. Therefore by the learning English you will have access to a great wealth of the entertainment and will be able to have a greater of theculture understanding, and the most of the content produced on the internet ( 50% ) is in English. So knowing English will allow you access to an incredible amount of information which may not be if not available ! Why the English is very importance for the Hotel Management, this is because in hotel everyday can see the different kind of the traveler or the tourist want to stated in the hotel. Sometimes a lot of the traveler or tourist is come from United Stated, United Kingdom, New Zealand, Canada, Australia, and the Ireland. In hotel, every day can see the a lot of the people is online booking the room or the reservation. All of the online booking or the online reservation is using the English, the staff of the hotel will check or confirm have the person online booking or online reservation or not. Sometimes have some guest is use the phone to booking or reservation of the room, the guest almost is using the English to booking or reservation the room. You must know the information, message or demand from the guest want to booking or reservation the room in your hotel. Can easily to get the information, message and demand of the different kind of guest this is because our know the importance o f English in hotel management and understand the English. If our cannot understand the English our cannot get the information and massage from the guest, also our cannot give the information and message about our hotel for the customer, because cannot understand or don’t know how to speak the English to guest. English is importance for a hotel management, this is because you can easily to get the information or the message from the tourist or the traveler. Our also can easily to using the English to communicate with the communicate and can satisfy the demand, need and wants from the different kind of the customer. This is because you understand what is the people said to you so you can clearly to confirm the demand, need and the wants. In the hotel most time is using the English to communication because the English is a international or the official language in the world, sometime some guest want to using the facilities in the hotel such as the spa, the gym, swimming pool, or other facilities in a hotel. Next, the English is important for us in hotel management this is because our can easily or faster to receive or to get the information from the different kind of the guest, so can easily to give the different service to the guest on the time or fast, the customer can feel the more polite from your. Also can increase the image or the name for your hotel. Next, also can increase the profit of the hotel. Next, the English is important in hotel management is you cannot confuse the information, this is because you understand and know the demand, wants, and needs of the different kind of customer. And you can easily to request and serve to customer. CONCLUSION Conclusion, English is important for us is easily to communication with different kind of guest. This is because the English is a important language in the world and English also is a international and official language for us. If the teen staff in tourism industry or in hotel can communicate well in English, the guest will feel the staff in hotel have good polite and give the good service to different kind of guest. So, English is very important for teen staff in tourism industry or in hotel. INTRODUCTION 2 What is a English, the English is a is a language from the West Germanic language that was first spoken in early madievel England and is now a global lingua franca. It is an official language of almost 60 sovereign states and the most commonly spoken language in the sovereign states include the United Kingdom, the United States, Canada, Australia, Ireland, New Zealand and a number of Caribbean nations. Why English is very important for us to communicate with different kind of the people, service for the other person, get the message, information or the data from the other person. First, the English may not be the most spoken language in the world, but it is the official language in a large number of countries. It is estimated that the number of people in the world that use in English to communicate on a regular basis is 2 billion ! Next, English is the dominant business language and it has to become almost a necessity for people to speak English if they are to enter a global workforc e, research from all over the world shows that cross-border business communication is most often conducted in English. Its importance in the global market place therefore cannot be understated, learning English really can change your life. Third is many of the world’s top films, books and music are published and produced in English. Therefore by learning English you will have access to a great wealth of entertainment and will be able to have a greater culturalunderstanding. Why have some people working cannot speak and cannot understand the English from the different guest ask them. This is because, some people working in the hotel is not Malaysians all is come from other country for the example is Vietnam, Brunei, Philippine, Indonesia, and also have some country. MAIN BODY I already access the teenagers working in tourism industry and the hotel. The name of the hotel I already access is called the Vistana Hotel. The reason why the teenagers in tourism industry are unable to communicate well in English. Because some teenagers are working in tourism industry is not Malaysians, all is come from the overseas country, so them cannot unable to communicate well in English for the different kind of the guest. Have a lot of the reasons of the teenagers are working in tourism industry are unable to communicate well in English. First reason is the teenagers is dislike, this is because the English have a lot of the vocabulary and the all vocabulary is have the many different meaning, the English easily to confuse and more difficult than other language. The teenagers working in tourism industry and the hotel them feel the English difficult understand, this is because the English vocabulary have a lot of use and the meaning. Next reason of the teenagers in tourism industry and the hotel are unable to communicate well in English reason is, lazy to learning the English because them very lazy to learning or speak the English. This is because them feel the English is not important for them of the life in every day. Them is also feel the English are very difficult for them, this is because in the English have a lot of the things are not spelled as they sound, such as pterodactyl which sounds like the teradactle or tough which sounds like tuff. Third is them feel the English language is a crazy language, this is because the English is the sometimes them think all the English speakers should be committed to an asylum for the verbally insane. In what language do people recite at a play and play at a recital ? Ship by truck and send cargo by ship ? Park on driveways and drive on parkways ? Have noses that run and feet that smell ? How can a slim chance and a fat chance be the same, while a wise man and a wise guy are opposites ? You have to marvel at the unique lunacy of a language in which your house can burn up as it burns down, in which you fill in a form by filling it out and in which an alarm goes off by going on. Next reason is, them feel the English is easily to learn but hard to perfect because English can be hard, but not the hardest. Chinese, Japanese, and Russian with all of the characters and sounds. They seem more difficult to tackle. So, them say its somewhat hard to learn, but hard to perfect of the English. Some native speakers dont even know the major grammar/spelling rules. But can see how someone who isnt a native speak get confused between the read and read or lead and lead. The fifth reason of the teenagers in tourism industry or a hotel unable to communicate well in English language is English is the hardest language to speak Pretty much every comment on the No side makes me laugh. Some people wrote Cantonese and Chinese are the hardest languages to learn. Its Cantonese and Mandarin or them said English was easy to learn. Probably because they were born and raised around English in schools and around friends. Any Chinese person that I have met who lived in China up until certain ages have incredible difficulty speaking English and you can barely understand them. People should become more educated about different languages and cultures before they make comments. Next reason is the English is the most difficult language does mean that you know the whole English language, even though them starting learning English since they are on their mother womb, this is because them dont practice or trying to learning on them will stuck on some sentences and them will use the N word and the M on each sentences because them dont know how explain or spelling or talk the correct English. And some sentences have plus the ing, ed, and s will to become the sentences have a lot of different meaning. The next reason is the teenagers in tourism industry or a hotel, them only like, speak or learning their mother tongue. This is because them feel their mother tongue is easily to understand, speak and learning than English language. Another reason is the teenagers is anytime speak the mother tongue for the guest come from same country such as the Brunei, Vietnam, China, Philippine, India, and the Indonesia. So this reason is cause the teenagers are unable to communicate well in English. Next reason of the teenagers in tourism industry or a hotel unable communicate well in English is them cannot remember the use or the meaning the English sentences. This is because, some English sentences is more spelling can cause the teenagers easily confuse and very difficult to remember the English sentences. For the example, some guest want to reservation or booking the room. The guest will give the name, phone number, IC number, and other data, if the teenagers in hotel cannot remember and no confirm the data from guest, and give the wrong message or the information to guest will cause the loss of hotel and the guest don’t want state in hotel because the guest is using the English do the reservation the room. Why the hotel loss the profit, because the teenagers of overseas cannot understand, confuse, lazy, not confirm the information and check the spelling is correct or not, don’t know the meaning and use of English and cannot speak and communication in English. A ll of this reason is cause the teenagers in industry tourism or a hotel unable to communicate well in English to different kind of the guest come from different country. CONCLUSION Conclusion, if speak or communication are using English will be more polite of us. If cannot speak, communication or understand the English our cannot give any information or message to guest and also if our cannot understand the guest or other person said, our cannot receive the any information or the message from the guest or other person because them is using the English to communicate with you. So, English is important for teenagers in tourism industry or a hotel this is because the English is a international language in the world and in hotel every day need to serve the different kind of guest so the teenager cannot without the English in every day. REFERENCE https://www.google.com/webhp?tab=wwei=dW3TVN28L6PGmAW5-YHQDwved=0CAYQ1S4gws_rd=crfg=1#q=conclusion+why+the+english+is+important+for+the+teenagers+communicate+in+hotelspell=1 https://www.google.com/webhp?tab=wwei=dW3TVN28L6PGmAW5-YHQDwved=0CAYQ1S4gws_rd=crfg=1#q=WHY+ENGLISH+IS+IMPORTANT http://dictionary.reference.com/browse/english http://en.wikipedia.org/wiki/Speak_Good_English_Movement https://prezi.com/r_-3ewemlqxt/the-importance-of-english-in-the-hospitality-industry/ http://bhuvangujjar.blogspot.com/2013/07/importance-of-english-language-in.html https://www.englishclub.com/english-for-work/hotel.htm http://www.englishformyjob.com/ell_hotelindustry.html http://www.familylives.org.uk/advice/teenagers/communicating-with-teenagers/the-importance-of-communicating-with-teenagers/ http://www.academia.edu/281159/A_Review_of_Personality_Research_in_the_Tourism_and_Hospitality_Context Hospitality EnglishPage 1

Disadvantages of Corporations

Double Taxation Double Taxation: Depending on what special rights and restrictions are attached to the shares, and how the profits of the corporation are paid out to the shareholders, there is the possibility of double taxation: the corporation must pay taxes on its profits and the shareholder may be subject to taxation on the profits paid out. This can result in greater taxation than if a corporation was not used for the business.C corporations pay taxes on profits when corporate income is distributed to owners (shareholders) in the form of dividends. This is the first taxation. The shareholders who receive dividends must also pay taxes for this distribution on their personal returns. This is the second taxation of the same money. The corporation itself does not pay taxes twice, but just the sound of â€Å"double taxation† can make potential business owners cringe. However, there is an out. Choose the IRS’ â€Å"S Corporation† tax status to avoid double taxation .In other systems, dividends are taxed at a lower rate than other income)(for example, in the US) or shareholders are taxed directly on the corporations profits and dividends are not taxed Double taxation is levying of tax by two or more jurisdictions on the same declared income (in the case of income taxes), asset (in the case of income taxes), or financial transaction (in the case of sales taxes). This double liability is often migrated by tax treaties between countries.Example: You decide to set up a corporation and have a profit of 1,000,000 in the first year. Suppose the government taxes corporate profits at 30%, then the corporation has to pay 300,000 in taxes. It is decided that 500,000 will be distributed as dividends and the dividend tax is 10%, so you will lose a further 50,000 to the government when you file your personal taxes. This is the concept of double taxation: first the company was taxed for its profits, and later shareholders were taxed for their dividends. (http s://www. boundless. om/business/types-business-ownership/corporations/disadvantages-corporations/) In many countries, corporate profits are taxed at a corporate tax rate, and dividends paid to shareholders are taxed at a separate rate. Such a system is sometimes referred to as â€Å"double taxation†, because any profits distributed to shareholders will eventually be taxed twice. One solution to this (as in the case of Australian and UK tax systems)is for the recipient of the dividend to be entitled to a tax credit, which addresses the fact that the profits represented by the dividend have already been taxed.The company profit being passed on is therefore effectively only taxed at the rate of tax paid by the eventual recipient of the dividend. In other systems, dividends are taxed at a lower rate than other income (for example, in the US) or shareholders are taxed directly on the corporation’s profits and dividends are not taxed. For example, S corporations in the US do not pay any federal income taxes. Instead, the corporation’s income or losses are divided among and passed through to its shareholders.The shareholders must then report the income or loss on their own individual income tax returns. For C corporations, the corporation ends up paying taxes twice. First, when the C corporation turns a profit, it pays a corporate tax rate on the profit amount. The second time the C corporation pays taxes is when it pays dividends to shareholders. Many businesses that incorporate choose to incorporate as an S corporation instead in order to avoid paying taxes twice. The only difference between a C corporation and an S corporation is a tax designation filed with the IRS using Form 2553.According to the IRS, an S corporation can choose to pass the income, losses, deductions and credit for the corporation through to the shareholders of the corporation for federal tax purposes. This avoids the double taxation possibility a C corporation is subject to . Double taxation. A possibility of â€Å"double taxation may arise on the dividends it pays. The corporation is taxed on its income. Then, if the corporation distributes some of the net income to the stockholders as a dividend, the dividend will be taxed again on the stockholders’ personal income tax returns.In case of corporations there is double taxation. First of all the corporate income is taxed at a flat rate and then the dividends paid to the shareholders is taxed. It may result to double taxation. Since the corporation is already taxed on its income, distributing this income to shareholders in the form of dividends may result to double taxation. This is because the dividend income received by the shareholders (natural persons) is also taxed on their personal income tax returns. Director and shareholder liabilityDirector and Shareholder Liability: While the general rule is limited liability, there are situations where directors and even shareholders of a corporation c ould be held personally liable for certain acts or failures of the corporation. There are many statutes that created personal liability on the part of directors and even shareholders. Also, the directors or shareholders might engage in activities, or fail to take certain steps, that could create personal liability. Without proper legal advise on the activities of a corporation, the benefits of using a corporation to conduct business could be lost.Record keeping Record Keeping: A corporation will be required to keep records of its shareholders, directors and officers, any changes of the shareholders, directors and officers, as well as records of its debts. Records of various other transactions or changes in the corporation must also be kept. Some of the records are open to public inspection; for example, anyone could have access to the list of shareholders although the new Business Corporations Act does have some restrictions. Corporations need to maintain more records than other bus iness entities.Corporations must file annual reports and tax returns and maintain business bank accounts and records that are separate from personal accounts. Shareholder meeting records, board of director meeting records, licenses and other corporate records also are necessary. (http://smallbusiness. chron. com/advantages-disadvantages-corporate-form-business-4389. html) Cost of organization Cost of Organization: The cost of organization for a corporation can be greater than for a sole proprietorship or a partnership. As well, there will be legal fees involved. There are many filing fees associated with forming a corporation.Nonprofits must file even more paperwork because they must apply to the IRS for tax exemption status (minimum $750 to apply). In a few states, nonprofits may also have to file separately for state tax exemption status. Even small fees can add up if you are cash-strapped already. The fees and legal costs required to form a corporation may be substantial, especia lly if the business is just being started and the corporation is low on financial resources. * The fees and legal costs required to form a corporation may be substantial, especially if the business is just being started and the corporation is low on financial resources. The fees and legal costs required to form a corporation may be substantial, especially if the business is just being started and the corporation is low on financial resources. One of the primary disadvantages of a corporation is the costs for running a corporate form of business. It costs money to incorporate with the state where the business operates. You can choose to hire an attorney or accountant to help you complete the incorporation paperwork, but it is not a requirement. If you incorporate directly with the Secretary of State, as of 2010, the fee ranges from $99 to $150.Beyond the initial incorporation fees, the corporate form of business also has ongoing fees associated with it. An annual report fee can range up to $150 a year for each year the corporation exists after the initial incorporation filing. . Incorporation is costly. Incorporating a business needs to file with the Securities and Exchange Commission (SEC) and may involve a lot of formal and legal papers, such as by laws, articles of incorporation, affidavit and board resolutions. This is sometimes done by getting the service of a corporate attorney or firms which are specialized in incorporating a business.It may also require higher amount of initial or paid-up capital for other types of corporation like financing and lending corporations. Furthermore, the amount of subscribed capital is taxed with documentary stamp tax, which may result to additional expenses to be incurred by the incorporators. (http://businesstips. ph/advantages-and-disadvantages-of-forming-a-corporation/) Greater Regulation Greater Regulation A corporation can be subject to greater regulation that can add to the cost of doing business.Various regulations may have to be complied with, for example, to sell shares, or raise capital. (http://www. whatisacorporation. com/html/disadvantages_of_corporation. html) Complexity in organization and regulation. To incorporate a business, an application with the Securities and Exchange Commission must be filed and approved. A higher capital requirement is also sometimes required for other type of corporations. Once approved, the corporation must comply with the numbers of regulations and reportorial requirements which are specifically implemented for corporations. http://businessaccent. com/2009/02/07/what-are-the-advantages-and-disadvantages-of-forming-a-corporation/) Corporations are highly regulated. Ordinary corporations are regulated by the SEC. Special corporations may be required with secondary licenses and are further regulated by other government agencies, such as Bangko Sentral ng Pilipinas (BSP) for financing and lending companies, Commission on Higher Education (CHED) for companies op erating secondary schools and Insurance Commission (IC) for insurance companies.Moreover, corporations also need to comply with the quarterly or annual reportorial requirements with the SEC and other agencies requiring those reports for certain types of corporations. This also means that the more compliance it requires, the more paper works and cost it involves. And when there are more to comply, bigger penalties are awaiting to be paid if they are not complied. Corporations can be complicated to form Corporations must file Articles of Incorporation with the state they are incorporating in for which states charge different filing fees.They may also need to file Bylaws, which may require the help of an attorney to write. Most states also require corporations to file annual documents and/or franchise tax fees. Nonprofits typically also have to pay fees for registering their charity each year. Although many entrepreneurs do file all their own paperwork, if you are new to business you s hould at least consult with a business attorney before attempting to form a corporation on your own. (http://womeninbusiness. about. com/od/corporations/a/corp-disadvant. tm) Establishing a corporation is a complex process and requires registration with the central regulatory authority and listing on a stock exchange which required fulfillment of certain requirements related to the amount of capital, number of directors, etc. Ownership Another disadvantage of corporations is that, as Adam Smith pointed out in the Wealth of Nations, when ownership is separated from management (i. e the actual production process required to obtain the capital), the latter will inevitably begin to neglect the interests of the former, creating dysfunction within the company.Some maintain that recent events in corporate America may serve to reinforce Smith’s warnings about the dangers of legally protected, collectivist hierarchies. Centralized management. Its centralized management restricts a mor e active participation by stockholders who are not major owners in the conduct of corporate affairs. Normally the corporations have a large number of shareholders; they delegate the governance function to a body of persons called board of directors. The

Relationship Among Stress, Adjustment And Homesickness Essay

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A Discussion on Risk Decision Making - Free Essay Example

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During the global financial turmoil of 2007 and 2008, no major derivative clearing house in the world encountered distress while many international enterprise companies were pushed to the brink (Jayanth Rama Varma, 2009). An important reason for this is that derivative exchanges have avoided using value at risk, normal distributions and linear correlations. The global financial crisis has also taught us that in risk management is more important than sophistication and that it is dangerous to use models that are over stress to short time series of global economy. The governance and regulatory strategies also help to monitoring the global economy and keep it balance to avoiding from the crisis. However, the implementation of th ese regulations and feedback are also the challenges for every international enterprises and the government. This paper applies some points to find out the role of financial engineering, such as use of collateralized debt products, contracts of difference and other derivatives products and recommends some solutions to solve or improve the governance and risk management strategies. It also show some suggestions for improving the companiesà ¢Ã¢â€š ¬Ã¢â€ž ¢ protecting system to avoid the risk and crisis during their expedition and daily operation. Table of Contents Executive Summary: Introduction Risk Theme Discussion Conclusion References Introduction The financial crisis of 2007à ¢Ã¢â€š ¬Ã¢â‚¬Å"2009, also known as the Global Financial Crisis and 2008 financial crisis, is considered by many economists to have been the worst financial crisis since the Great Depression of the 1930s (Reuters, 2009). 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The worlds major economies are facing the c risis go to all lengths in Europe and the United States not occur even in a hundred years, and even the government began to use the à ¢Ã¢â€š ¬Ã‹Å"government interventionà ¢Ã¢â€š ¬Ã¢â€ž ¢ instead advocated à ¢Ã¢â€š ¬Ã‹Å"economic freedomà ¢Ã¢â€š ¬Ã¢â€ž ¢, so as to prevent a further decline in that market confidence. But the crisis still exists, the nightmare is far from over. Risk Theme Discussion Risk is inherent in everything we do, whether it be riding a bicycle, managing a project, dealing with clients, determining work priorities, purchasing new systems and equipment, taking decisions about the future or deciding not to take any action at all (Australian/New Zealand Standard, 2009). Risk can be defined as effect of uncertainty on objectives (Australian/New Zealand Standard, 2009). Risk management defined as the culture, processes and structures that are directed towards realizing potential opportunities whilst managing adverse effects (Australian/New Zealand Standard, 2004). And risk management has an important role in striking the balance between the cost of risk and risk reduction (Gordon Dickson, 1995). On the surface, the subprime problem is caused by low-income peopleà ¢Ã¢â€š ¬Ã¢â€ž ¢s mortgage in the United States. Essentially, the crisis originated in the salvation of the last crisis, which was in 2001 after the US Internet bubble burst, the Fed to stimulate the economy, dropped the interest rates to about 1 percent level, and at the same time relax controls on lending. But under the economic stimulus objectives, excessive misusing of credit and credit risk swaps, which ultimately caused the crisis worsened. And from begin to end that both regulators, financial institutions and individuals was ignoring the risk management. The main causes of the subprime are three things, which were securitization, leverage and government supervision. All of these problems can be attributed to the neglect of risk management. From the regulators point of view, due to the long-term economic and market prosperity, liberal philosophy occupies in the minds of regulators, so that more deregulation and liberalization making financial regulators at that stage became their core values. Listed financial institutions, especially investment banks, just in pursuit of performance targets, driven by the rapid growth of one-sided pursuit of business scale and operat ing profits, while ignoring risks even defy the risk. Moral risks and adverse selection breeding more common during the financial industry, employing ethical standards and risk management levels declined, and even has a strict authoritative rating agencies blindly optimistic, without make an objective rating conclusion. These gradually deepened the crisis in the problem of asymmetric information, and with low-income people under the stimulation of consumer credit, the rising house prices have unrealistic fantasies for their weak financial ability, blindly loan to buy a large area of housing. Eventually, it forced to accept the tragic fate of bankruptcy. On September 15, 2008, Lehman Brothers announced for bankruptcy. It was the largest bankruptcy ever, and it still is. The bank had assets of $639 billion, which is about as much as the five subsequently largest bankruptcies combined. The size of the bankruptcy could also be described as more than one and a half time the gross dome stic product of Sweden in 2009. Before declaring bankruptcy in 2008, Lehman was the fourth-largest investment bank in the US (behind Goldman Sachs, Morgan Stanley, and Merrill Lynch), doing business in investment banking, equity and fixed-income sales and trading (especially U.S. Treasury securities), research, investment management, private equity, and private banking. Lehmans demise also made it the largest victim, of the U.S. subprime mortgage-induced financial crisis that swept through global financial markets in 2008. Ità ¢Ã¢â€š ¬Ã¢â€ž ¢s likely that the bonus system encouraged the management to take big risks. The operational errors made when excluding assets in stress tests, exceeding established risk limits and over-leveraging the balance sheet, may have been fueled by bonus prospects. A banking system without bonuses is unthinkable for many, but another way to decrease the future bonus-related risk taking could be to build in a risk-aversion parameter in the bonus crite ria. For instance, no bonuses are rewarded if stress test shows large risks, even if profits are big, although this requires stress testing to be executed by independent instances. A lot of market risk could have been avoided if Lehman hadnt invested heavily in correlated assets. The credit crunch hit largely because of the subprime crisis and it affected both commercial real estate and leveraged loan assets. Because of the ties between the assets, Lehman was struck quickly by losses on many fronts. The consequences of a hit in this chain could have been less fatal if the bank had been operating more diverse and not concentrated its portfolio. They made themselves vulnerable to liquidity risks. They were depending on short term funding for long term investments, which turned out to be a fatal mistake as the credit market dried up and they were left with illiquid assets. Also if they had done better stress testing and simulations they would have not changed their focus from broker age and financial services. The high leverage ratio affected the other risks adversely making downfall fast and unstoppable. On the other hand, financial institutions place undue reliance on financial derivatives that all risks can be passed to others through the tool of innovation, thus ignoring the inherent risks of derivatives, which eventually led to the financial risk is magnified tenfold. If the financial institution focused on risk management, only loans and credited to the balance sheet, then, this was just as bad debts for the bank and stay in the banking system. In fact, with the 1980s US savings and loan association crisis and the Japanese economic bubble burst after the financial crisis, which were due to falling real estate prices guaranteed, so that the emergence of bad debts, and finally evolved into Bank management crisis. Since that time, the financial crisis has not been enlarged by derivatives, the US financial market and financial system can be quickly correct ed and recovery after the event of problems. However, this time, the crisis did not can be as lucky as the last time, 70% subordinated loans, including housing-related loans have been securitized, and the situation has been very different in the past. By the securitized underground passage, the loan market (indirect financial market) and securities (direct financing market) formed integration. If a problem occurs in the loan market, it would be directly affect the stock market. In other words, the price of related commodities on the stock market decreased, it will show some problem highlighted on the loan market, and that is the truth of the subprime problem. Therefore, it is a typical results of currency market risk through the capital markets which are disorderly zoomed by tools. It is also the financial institutions count on derivatives to against with risk, which not only does not resolve the risk, but actually magnified risks. As analyzed, it may lead to excessive securit ization and irresponsible to ignore the proliferation risks in the financial markets. In the market expansion cycles, it will resulting the bad money drives out good money effect, a large number of timid Financial professionals whose focus on risk management with poor performance and were eliminated, and bold employees, whose superstition with securitized universal, were popular. They do not know, maybe do not want to emphasize that the first question or the easiest problem about securitization is the existence of information asymmetry. Someone with finance knowledge should know that the different investorsà ¢Ã¢â€š ¬Ã¢â€ž ¢ original investing housing loans and securitized financial products, which were difficult to understand the true quality of products. To this end, investors can only rely on the expertsà ¢Ã¢â€š ¬Ã¢â€ž ¢ evaluation and referral. As we all know, Implementation the evaluation is the rating agencies, but these agencies did not fully or objectively fulfill their duties. The second issue caused by Securitization was moral risk. The main reason is that, as much as the manufacturersà ¢Ã¢â€š ¬Ã¢â€ž ¢ securitization loan portfolio sold to the third parties, by using leverage to making more profits. As the market expands, the desire began to swell and become distorted. The third problem is that since the implementation of securitization makes debt negotiation difficulties and become a big problem. Because of this cannot be like a loan held by bank which can change in different conditions and solved with relatively liberal measures. Credit rating agencies which plays a very disgraceful role. Some slow responded of the credit rating agencies even deliberately raised its credit rating to investment products, banking, and financial risk to some extent diffusion plays a role in fueling. The occurrence of this subprime problem, which was the result of securitization the above issues for several times. More securitization will aggravate the infor mation asymmetry phenomenon, and regulators, financial institutions, and financial market participants have to pay no heed. Housing loan securitization has become RMBS (residential mortgage-backed securities), in the lower part of the rating of RMBS securitized to CDO (collateralized debt obligation), then split CDO into CDO quadratic, and from CDO quadratic to CDO cube, the market has lost the original the law, and became a desire machine. At the same time, in this framework, also incorporates a lever mechanism. In finance, leverage (sometimes referred to as gearing in the United Kingdom and Australia) is any technique to multiply gains and losses (Brigham, E., Houston, J, 2011). Especially the involvement of hedge funds, they will generally use leverage when buying RMBS and CDO, some even appeared to expand the original housing loans by 1000 times. In such a high leverage effect, when the original loan losses, the negative impact was immeasurable. If it must to find some regul atory problems, for some lack of financial knowledge and have not enough information people, the government authorities without proper supervision is the essence of the problems, and this is called Predatory lending. The definition of Predatory lending is the practice of a lender deceptively convincing borrowers to agree to unfair and abusive loan terms, or systematically violating those terms in ways that make it difficult for the borrower to defend against.à ¢Ã¢â€š ¬Ã‚  America has a long history for predatory lending, but the subprime problems seem to make people feel that these arguments did not play their roles. The so-called the law is strong but the outlaw are ten times stronger, under the huge wage gap, the talentà ¢Ã¢â€š ¬Ã¢â€ž ¢s quality for financial institutions to absorb higher than these regulators. In other words, the understanding by regulators about the financial innovation is lower than the product designers. Therefore, regulators cannot discover the risk seems logical. Thus, as the US real estate continues to shrink, the Fed increased pressure to raise interest rates, the subprime mortgage crisis hit the previous day by day. From another perspective, the Feds supervision of banks is critical. If all US financial assets are supervised by the Fed, maybe the risk can be controlled within a limited range. But on the subordinated debt and derivative products by SEC regulation, as an institution of long-term supervision of equity assets, claims on assets of stakes certainly not than the Fed, the regulatory dislocation can also be seen as the key cause of the crisis. Furthermore, the disruption in financial markets since the middle of 2007 has had a marked impact on Australian financial markets and the Australian economy (Guy Debelle, 2009). While local markets have been disrupted, the degree of dislocation has, in most cases, been considerably less than in other countries. One important reason for this is that the degree of counterparty risk aversion has been less in Australian markets given that Australian financial institutions had minimal exposure to the securities that have compromised the balance sheets of other financial institutions around the world. ISO 31000 was published as a standard on the 13th of November 2009, and provides a standard on the implementation of risk management. While all organizations manage risk to some degree, the ISO Standard establishes a number of principles that need to be satisfied before risk management will be effective. Risk management can be applied across an entire organization, to its many areas and levels, as well as to specific functions, projects and activities (Australian/New Zealand Standard, 2009). Conclusion Although closely related to financial innovation and the global financial crisis, but the real culprit of the GFC is hidden behind these innovations greed and disregard for extreme risk control. The nature of the problem is not how to limit the pace of innovation in the financial industry, but rather how to strengthen internal risk controls and risk management of financial institutions and international enterprises. For regulators, that means holding financial institutions to better standards of probity and prudence than prevailed in the past (Malcolm Edey, 2014). Excessive leverage is a bad idea. And the financial engineering should have a correct use by financial institutions and for all the companies also should have built an impeccable risk management system to avoid the any crisis and problems during their operating. So it is investing in complex financial securities which the risk is not correctly understood. Banks around the world need have a better risk management, and enha nce their capital and liquidity risk controls. Expectations about financial growth and economy sustainable need to be realistic.